Blundstone threatens to stop local manufacture

Under attack. . .could be the end of the road for local bootmakers. Photo: Jessica Shapiro

Blundstone Boots has said it might have to stop manufacturing its famous boots in Australia because of competition from lower cost imports.

The chief executive of Blundstone, Steve Gunn, has decided to go public with his concerns to coincide with the Federal Government considering its response to a Productivity Commission report calling for further cuts in protection for the textile, clothing and footwear industries.

Blundstone has a factory in Hobart, employing 350 workers, to make its famous boots as well as another, smaller factory in Melbourne which makes gum boots and employs 15 workers.

"Blundstone is at an operational crossroads," Mr Gunn said.

"We are seeing a reduction in domestic sales despite broadening out our product base and making extra effort to establish access to the market."

"It appears that cheap imports are gaining support in the market at our expense.

"Unless that situation turns around, we will be forced to take decisions to meet competition. Doing so would most likely come in the form of reduced local manufacturing," Mr Gunn said.

"Our company is a committed local and would see such a measure as an absolute last resort.

"I am sending a message out now before any decisions get taken to allow the market to understand that, without its support, we will get forced into a position that we would prefer to avoid.

"We cannot afford to become the victim of diplomatic neatness or example-setting, effectively being a pawn in the international trade chess game. In the meantime, we will be doing everything we possibly can to stay as local manufacturers.

"Unfortunately though, the outcome is not completely in our own hands," Mr Gunn said.

Blundstone in recent years has been focusing on lifting its export income in the face of growing local competition.

Blundstone recently registered a 30 per cent jump in exports in the past 18 months, reflecting the diversification of its product range over the past two years.